The proposed bill, HB 1417, allows municipalities, cities, and towns in New Hampshire to implement a land value tax (LVT) system, which taxes land at a higher rate than improvements. This legislation introduces new legal definitions and procedures for adopting an LVT, including the establishment of separate assessments for land and improvement values, and mandates public hearings and fiscal impact statements prior to adoption. The bill ensures that existing exemptions and credits remain applicable and outlines a process for municipalities to rescind the LVT after a minimum of three years. Additionally, it appropriates $1 to the Department of Revenue Administration to support the implementation of the LVT program, while maintaining that the LVT will not affect the statewide education property tax.

The bill does not delete any existing legal language but focuses on inserting provisions necessary for the LVT's implementation. The fiscal impact of the bill is indeterminable, as it does not create new positions or generate new revenue for the state. While municipalities adopting LVT will not see an overall increase in revenue, they will experience a redistribution of the tax burden, which may lead to increased expenditures for software and personnel. Transition costs for municipalities are estimated to range from $100,000 to $500,000, depending on their size, with ongoing costs remaining uncertain. The act is set to take effect on January 1, 2027, and includes provisions for annual reporting and a sunset review to evaluate the program's impact on fiscal, housing, and economic outcomes.